https://www.taxtmi.com/caselaws?id=765307 CESTAT NEW DELHI held that notional cost of drawings and designs supplied free by a buyer to potential vendors cannot be included in assessable value of manufactured parts. The Tribunal ruled that additional consideration for sale exists only when there is a contract between parties where buyer pays over agreed price. Since specifications were provided during vendor identification stage before any sale agreement, provisions of section 4(1)(b) of Central Excise Act and Rule 6 of Valuation Rules could not apply. The demand for differential central excise duty was set aside and appeal allowed. en-us Tue, 28 Jan 2025 00:00:00 +0530 Thu, 30 Jan 2025 08:24:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765307 CESTAT NEW DELHI held that notional cost of drawings and designs supplied free by a buyer to potential vendors cannot be included in assessable value of manufactured parts. The Tribunal ruled that additional consideration for sale exists only when there is a contract between parties where buyer pays over agreed price. Since specifications were provided during vendor identification stage before any sale agreement, provisions of section 4(1)(b) of Central Excise Act and Rule 6 of Valuation Rules could not apply. The demand for differential central excise duty was set aside and appeal allowed. Case-Laws Central Excise Tue, 28 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765307